Coalfield Services, Inc. (Commission decision, February 7, 2011)

Plain-English summary

Coalfield Services asked the Commission to reopen a final penalty assessment, stating only that a clerical error caused it to miss the contest deadline. The Secretary did not oppose reopening but urged the company to improve its procedures. The Commission found the explanation too conclusory and lacking enough detail to justify relief. It denied the request without prejudice and allowed Coalfield 30 days to submit a more specific renewed request.

Decision snapshot

• Governing provision: 30 U.S.C. § 815(a)
• Outcome: The reopening request was denied without prejudice, with 30 days allowed for a renewed request.
• Key point: A bare claim of clerical error is not enough to reopen a final assessment without facts explaining what went wrong.

Full text (FMSHRC public release)

Federal Mine Safety and Health Review Commission

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

601 NEW JERSEY AVENUE, NW

SUITE 9500

WASHINGTON, DC 20001

February 7, 2011

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH

ADMINISTRATION (MSHA)

v.

COALFIELD SERVICES, INC.

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Docket No. WEVA 2009-1796

A.C. No. 46-05992-183453 R58

BEFORE: Jordan, Chairman; Duffy, Young, Cohen, and Nakamura, Commissioners

ORDER

BY THE COMMISSION:

This matter arises under the Federal Mine Safety and Health Act of 1977, 30 U.S.C.
§ 801 et seq. (2006) (“Mine Act”). On August 13, 2009, the Commission received from Coalfield Services, Inc. (“Coalfield”), a motion requesting that the Commission reopen a penalty assessment that had become a final order of the Commission pursuant to section 105(a) of the Mine Act, 30 U.S.C. § 815(a).

Under section 105(a) of the Mine Act, an operator who wishes to contest a proposed penalty must notify the Secretary of Labor no later than 30 days after receiving the proposed penalty assessment. If the operator fails to notify the Secretary, the proposed penalty assessment is deemed a final order of the Commission. 30 U.S.C. § 815(a).

We have held, however, that in appropriate circumstances, we possess jurisdiction to reopen uncontested assessments that have become final Commission orders under section 105(a). Jim Walter Res., Inc., 15 FMSHRC 782, 786-89 (May 1993) (“JWR”). In evaluating requests to reopen final section 105(a) orders, the Commission has found guidance in Rule 60(b) of the Federal Rules of Civil Procedure under which, for example, a party could be entitled to relief from a final order of the Commission on the basis of mistake, inadvertence, or excusable neglect. See 29 C.F.R. § 2700.1(b) (“the Commission and its Judges shall be guided so far as practicable by the Federal Rules of Civil Procedure”); JWR, 15 FMSHRC at 787. We have also observed that default is a harsh remedy and that, if the defaulting party can make a showing of good cause for a failure to timely respond, the case may be reopened and appropriate proceedings on the merits permitted. See Coal Prep. Servs., Inc., 17 FMSHRC 1529, 1530 (Sept. 1995).

On April 23, 2009, the Department of Labor’s Mine Safety and Health Administration (“MSHA”) issued Proposed Assessment No. 000183453 to Coalfield. Coalfield asserts that it did not send in the contest form because of “a clerical error.” It further contends that when it learned of its error on or about June 30, 2009, it unsuccessfully attempted to file the contest with MSHA at that point. Although the Secretary does not oppose Coalfield’s request to reopen, she urges the operator to take all steps necessary to ensure that future penalty assessments it wishes to contest are contested in a timely manner.

Having reviewed Coalfield’s request to reopen and the Secretary’s response thereto, we determine that the operator has failed to provide a sufficient basis for the Commission to reopen the penalty assessment. The operator’s contention of “a clerical error” is conclusory, lacks sufficient detail, and does not provide adequate grounds for reopening. Accordingly, we hereby deny without prejudice Coalfield’s request to reopen. Eastern Assoc. Coal, LLC, 30 FMSHRC 392, 394 (May 2008); FKZ Coal Inc., 29 FMSHRC 177, 178 (Apr. 2007); Petra Materials, 31 FMSHRC 47, 49 (Jan. 2009). The words “without prejudice” mean that Coalfield may submit another request to reopen the Assessment No. 000183453.

Any amended or renewed request by
the operator to reopen this assessment must be filed within 30 days of this order. Any such request filed after that time will be denied with prejudice.

Mary Lu Jordan, Chairman

Michael F. Duffy, Commissioner

Michael G. Young, Commissioner

Robert F. Cohen, Jr., Commissioner

Patrick K. Nakamura, Commissioner

Distribution:

Michael Houseman

Coalfield Services, Inc.

2942 Peppers Ferry Rd.

Wytheville, VA 24382

W. Christian Schumann, Esq.

Office of the Solicitor

U.S. Department of Labor

1100 Wilson Blvd., Room 2220

Arlington, VA 22209-2296

Melanie Garris

Office of Civil Penalty Compliance

MSHA

U.S. Dept. Of Labor

1100 Wilson Blvd., 25th Floor

Arlington, VA 22209-3939

Chief Administrative Law Judge Robert J. Lesnick

Federal Mine Safety & Health Review Commission

601 New Jersey Avenue, N.W., Suite 9500

Washington, D.C. 20001-2021